BHP Billiton Limited
(ASX:BHP) has revealed the demerger of its proposed $US15 billion spin-off South32 will likely cost the company about $US738 million.
The diversified mining giant says the charges include stamp duty and cash tax, set up, separation and execution costs, including financial advisor costs.
CEO Andrew Mackenzie believes the demerger will enable BHP to further focus on achieving substantial productivity benefits beyond the $US4 billion per annum already targeted.
The company’s board has recommended shareholders vote in favour of the demerger at meetings to be held in Perth and London on May 6, 2015.
BHP Billiton reported a net profit of $5.84 billion in the first half of the 2015 financial year.
